#1 Fit or fat? Take our financial quiz Do you have a written household budget? Do you pay more than the minimum amount on your credit card or have no credit card debt? Do you have an emergency savings fund? Do you know what fees you re paying in your retirement account / other financial products? Do you know how much you need to save for retirement? Do you review your insurance coverage annually? Do you do your homework when making major purchases? Do you check your credit report annually? FIT S FAT 16-12 points FISCALLY FIT: Great work keep working on your financial condition. 10-8 points A LITTLE SOFT: Good start time to get a plan to firm up your finances. 6 points or less COUCH POTATO: Get moving! Time is your ally the sooner you start taking control of your financial health, the sooner you ll see results. We can help. No matter what your score, reading our Teaching Today articles this school year will provide financial tips and resources that can help you improve your personal finances. You can also make an appointment for a free financial consultation. Just give us a call. We re here for you. ts Personal Get a workout buddy. All investment advisory services are offered through WEA Advisors, Inc.
#2 find a financial fitness friend or financial mentor Buddying up with a friend or colleague with a similar desire to make positive change whether it s improving your physical or financial health can make all the difference in your progress and results. A financial buddy, like a workout buddy, can provide the moral support needed to evaluate your current situation, envision where you need to go, and develop a plan to get there. And, it s just more fun to share the challenge. You might pair up with a colleague who can show you the ropes, like a seasoned educator who s able to answer some of your questions, direct you to trusted resources, and encourage sound financial decisions: A financial mentor. mentors have a passion for helping their colleagues build financial security. Their common mission is to share knowledge and information about how one can do good as an education professional and do well financially. Here are some ways to pair up and strengthen your wealthy habits: Find a financial mentor. Chances are there s one in your building. They may not call themselves financial mentors, but you can identify them by listening and asking questions. You can find a list of our financial mentor award winners at weabenefits.com. Search for mentor. Invite colleagues to attend a personal finance group. It s a great way to share experiences, discuss concerns, and collect resources. Member Benefits can provide information to help you get started and generate interest by hosting our award-winning Don t Be Jack financial learning game in your district. Partner up with a financial planner. Jump start your financial improvement plan with a free personal financial consultation. Our financial planner can assess where you re at today and provide realistic options to help you achieve your goals. Learn more at weabenefits.com/fps. Build up your financial strength with steps to become more financially fit in every Teaching Today issue ents Personal Protect your Assets All investment advisory services are offered through WEA Advisors, Inc.
#3 Protect your assets There s more to financial security than simply putting money away for the future. It s easy to forget that insurance plays an important role in financial well-being. Having adequate insurance helps decrease your financial risk by protecting you against the cost of accidents, property loss, or most importantly, liability. Make sure your biggest investments like your home, car, boat, and future earnings are protected. When considering insurance coverage, here are some important things to keep in mind: Cost. Many people tend to choose the least expensive policy. However, this strategy could backfire if you don t have the coverage you need when you need it. Learn about your policy options and select the coverage (and the insurer) that best meets your needs and provides the best value for your premium dollar instead of just shopping for the lowest premium. Make sure your coverage is appropriate. For example, many people believe their homeowners insurance coverage is based on the market value of their home. But that does not reflect the cost of labor and materials should you need to rebuild. Ask your insurer to help you evaluate how well your policies manage your risks. Deductibles. The higher your deductible, the lower your premium cost. If you choose a higher deductible because claims tend to be infrequent, make sure you can handle paying the deductible you select without significant hardship in the event of a loss. It s a good idea to evaluate the premium difference between deductible options and determine how long it would take you to save enough in premium to offset the higher deductible. Our consultants can help. Review policies annually. Your life changes, and so do your insurance needs. Remember, insurance coverage is an essential part of your financial health. If you would like to review your insurance coverage or if you have any questions, feel free to contact us at. Personal Trim the fat Property and casualty insurance programs are underwritten by WEA Property & Casualty Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details. Certain policy exclusions and limitations may apply.
#4 Trim the Fat. Go on a Debt Diet. Is debt weighing you down? Here are seven ways to improve your financial condition by reducing debt and getting your spending under control: 1. Start with a plan. Create a budget. A budget allows you to take control of your finances. It can help you find ways to cut expenses, carve out extra money to pay down debt, allocate more toward your retirement savings, and beef up your emergency fund. Payroll deduction and automatic withdrawal options are great budget helpers. 2. Cut the cards. Stop using credit cards. Cut them up, take them out of your purse or wallet, or freeze them in a glass of water. Doing so will make you think twice about whether you really need the card. 3. Prioritize your spending. Figure out what needs to be paid first. Organize your spending into categories: essential and non-essential. Then, develop a plan to pay off what you owe by redirecting the non-essential money to your debt. Pay off debt with the highest interest rate first. 4. Pay with cash, write a check, or use your debit card instead of using credit. Only buy what you can afford. 5. Start an emergency fund. Having an emergency savings fund can help cover unexpected expenses and will keep you from needing to take on credit card debt. 6. Find a financial fitness buddy. Find a friend or colleague who offers encouragement, advice, and guidance for becoming financially secure. Pairing up with a friend or financial mentor at your school can help you put your savings goals ahead of the game. 7. Focus on the long-term. When you lose weight, you look and feel better. The same is true when you remove the weight of excessive debt from your life. Write down your goals, stick to a plan, and talk with a financial planner to help you get back on track. We can help. Schedule a consultation with our financial planner. Planning Personal 403(b) Tax-Sheltered Couch to $5K: How to sock away $5K into a retirement account. 2014 WEA Member Benefit Trust All Rights Reserved All investment advisory services are offered through WEA Advisors, Inc. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA. The Trustee Custodian for the accounts is Verisight Trust Company.
#5 Couch to 5K Having a hard time saving for retirement? Like starting an exercise plan, taking small steps and working your way up to more distance, more time, or more strength makes it easier to meet your personal goals. In the same way, you re more likely to start a successful savings plan by starting small. It only takes a few steps. Choose a reachable goal. Don t think you can go from saving nothing to $5000 a year? That s okay! Set up a savings goal that is attainable for you right now. Even $25 a month can be a great way to ease yourself into the habit of saving. Then you can raise your goal as your financial picture changes. And if you don t quite make it to your goal, at least you re in the race. Remember, compound interest will make your money work harder over time, so the sooner you start, the better even if it s just a modest amount. Know your fees. Fees can take a big bite out of your savings. To make it easier to hit your retirement goals, make sure you know all the fees you re paying and choose a low-cost provider. Visit weabenefits.com/fees to learn more. Make it automatic. If your school offers payroll deduction for your 403(b) or plan, take advantage of it. Or, set up automatic deduction through your bank or credit union. It makes saving for retirement super convenient. Ready to get started? Member Benefits is here to help. Visit our Web site at weabenefits.com to: Open a retirement account. Read articles on retirement saving. Register for a free seminar. Make an appointment for a free one-hour financial consultation. Use our free online calculators. Or, set up a personal phone consultation and get your questions answered by a real person. Visit weabenefits.com/consults. Personal Bulking up your savings. All investment advisory services are offered through WEA Advisors, Inc. Seminars are free to attend; however, if you choose to invest in the WEA Tax Sheltered or program, fees will apply. Consider all expenses before investing.
#6 bulk up your savings If you ve been saving for a while, it s a good time to take a look and see what s working and what isn t. Like a good fitness regime, changing things up from time to time can give you a boost. Here are a few tips to help you bulk up your financial savings. Give yourself a raise. Work toward contributing the maximum allowed to your retirement accounts by redirecting money from expenses you no longer have or increase your contributions when you get a raise. For 2015, individuals can contribute up to $18,000 to a 403(b) and $5,500 to an. Both have catch-up opportunities for those age 50 and older. Rebalance. When was the last time you looked closely at your retirement savings accounts? The new year is a good time to see if you need to rebalance. Rebalancing your retirement accounts allows you to maintain the desired asset allocation mix and keep your risk level in check. Over time your investments may get out of alignment with your investment style and strategy. Make it automatic. matic contributions through payroll deduction or your bank or credit union makes saving for retirement super convenient. All 403(b) contributions are payroll deducted. Some districts offer payroll deduction for, too. Regular contributions are key to a successful savings plan. Assess your goals. Before you get too far into the year, take stock of where you are at. Are you on track to meet your goals? What changes do you need to make? If you need help or guidance, WEA Member Benefits offers a variety of financial planning services to meet your needs whether you are just starting or actively planning retirement. Set up a personal phone consultation at weabenefits.com/consults. Pump up your knowledge. Take advantage of our free financial resources and tools, including: calculators, budget worksheets, articles and tips, plus insightful videos and more at weabenefits.com. Personal Train your money brain. 2015 WEA Member Benefit Trust. All Rights Reserved. This article is for informational purposes only and not intended to be legal or tax advice. Consult your tax advisor or attorney before taking any action. All investment advisory services are offered through WEA Advisors, Inc. Seminars are free to attend; however, if you choose to invest in the WEA Tax Sheltered or program, fees will apply. Consider all expenses before investing.
#7 Train your money brain Shouldn t getting $10 make you equally as happy as losing $10 makes you sad? It doesn t make logical sense, but research shows that we re twice as upset at losing $10 than we are at gaining $10. Unfortunately, we re psychologically hardwired to make financial decisions that aren t necessarily in our best interest. This is especially important to understand when it comes to long-term investing. This aversion to loss can have a big impact on your investing choices, which could cause you to come up short at retirement. The good news is that you can train your brain to trust strategy instead of emotions to lessen the psychological impact of market changes on your decisions. Here are a few strategic tips to get started. Spread out your risk. Diversifying, or putting your money in different types of investments, has long been recognized as an effective way to manage your risk. A well diversified portfolio can lessen the impact of market volatility and help reduce emotionally charged reactions. Take the long view. Retirement savings accounts are investments for the long term, and that means riding out the market slumps. The stock market historically has made much of its long-term gains in spurts, so being out of the market even briefly could cost you dearly. Invest early and stay the course. Put investments on auto pilot. There are low maintenance funds available based on age or your investing style so that you won t have to think much about it until you re ready to make withdrawals in retirement. From a psychological standpoint, this may be a good option. Have questions about saving for retirement? Call us at or set up a free phone consultation at weabenefits.com/consults. Personal Family financial fitness. The Trustee Custodian for the accounts is Verisight Trust Company. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA.
Personal financial fitness for the family #8 fitness is a life-long journey. Help kids learn to manage their money wisely by starting early. Children who learn the importance of being financially fit will become adults who have established good money management habits and skills that will benefit them their entire life. Here are some ways you can teach your kids about money. Try a team approach. Talking to children about the family budget, bills, and including them in money discussions and financial decisions is an excellent learning opportunity. Working together and having open and honest discussions about money can help kids feel like they are part of a team. Take your child shopping. Going to the grocery store can be very educational if you take the time to turn it into a learning activity. Share what s on your list and explain the difference between needs and wants. Tell your child what your budget is and talk about the decisions you make in order to stay within your budget. Explain how coupons can help you save money. Give an allowance. School-age children can earn an allowance by helping out with chores. Earning an allowance gives children hands-on experience with managing their money. Encourage saving. There are different kinds of saving: saving in order to buy a particular item, saving for an emergency, and saving to build up future financial security. Try to teach your children to designate a portion of their money to different types of saving. Teach generosity. Have a discussion about charity and encourage your child to pledge a portion of his or her allowance to the charity of their choice. For other savings tips, articles, and financial calculators, visit our Web site for more information. weabenefits.com. Preventing financial injury The Trustee Custodian for the accounts is Verisight Trust Company. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA.
#9 Prevent financial injury As hard as we try to keep moving forward financially, poor financial habits can slow us down. Here are a few habits that can trip up your financial fitness plan and ideas to help you overcome them so you can get back in the game. No budget. Planning your budget helps you gain control of your finances, set goals, and measure your success. Visit weabenefits.com for an interactive budget sheet and free financial calculators. Spending more than you earn. This can be easy to fall into! Set up that budget and stick with it. Include a way to pay yourself first to build your savings it s easy when you use payroll deduction or electronic funds transfer (EFT). No emergency fund. Try to save six months of your salary for emergencies. It seems like a lot but even saving $20 per paycheck will help it grow. Not saving for the future. Your short-term goals may be more obvious but don t forget to plan for long-term goals like retirement. Member Benefits low-cost 403(b) and programs are great options. Paying too much in fees. Fees can have a dramatic impact on your retirement earnings. Learn more about common fees that can affect your returns by visiting weabenefits.com/fees. Not enough insurance. plays in important role in your financial health by decreasing your financial risk against accidents, major health issues, and property loss. Our personal insurance consultants can review your current insurance coverage to make sure you re adequately covered. Do you have questions about your finances? Wisconsin public school employees can always talk to our one of our consultants or set up a free financial consultation. Give us a call today or e-mail memberbenefits@weabenefits.com. Personal Do you measure up? The Trustee Custodian for the accounts is Verisight Trust Company. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA. Property and casualty insurance programs are underwritten by WEA Property & Casualty Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.
1. Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have? A. More than $102 B. Exactly $102 C. Less than $102 2. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today? A. More B. Less C. Same #10 Do you measure up financially? 59% of U.S. adults give themselves a grade of A or B on their knowledge of personal finance, yet 86% of Americans can t ace this simple personal finance quiz. Can you? See how you measure up financially by taking this short financial literacy quiz. 3. True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less. 4. If interest rates rise, what will typically happen to bond prices? A. Rise B. Fall C. Stay the same D. There s no relationship to bond price and interest rates. 5. True or false: Buying a single company s stock usually provides a safer return than a stock mutual fund. Not satisfied with your level of financial knowledge or your financial situation? Member Benefits can help. We have a variety of financial resources available on our Web site including financial calculators, articles, tips, and videos. Plus we offer financial seminars as well as free and fee-based financial planning services to suit your needs. Schedule a free consultation and get started today. >> weabenefits.com/consults s Personal Visit our Web site for more financial fitness tips weabenefits.com Answers: 1: a, 2: b, 3: true, 4: b, 5: false FINRA Literacy Quiz This article is for informational purposes only and not intended to constitute legal, financial, or tax advice. Certain recommendations or guidelines may not be appropriate for everyone. Consult your personal advisor or attorney for advice specific to your unique circumstances before taking action. The Trustee Custodian for the accounts is Verisight Trust Company. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA. Property and casualty insurance programs are underwritten by WEA Property & Casualty Company. All investment advisory services are offered through WEA Advisors, Inc.